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Why the ChAFTA is good for Australian business

Posted on October 31st, 2015

Australia is one of the most popular countries for overseas investors and business people. This is largely due to our acceptance of innovation and change in both the business sense and lifestyle. In a country which regularly encounters turbulent weather patterns, the Australian culture of adapting to new environments – including corporate – is one of the strongest traits of the Australian people.

Whilst western in culture, like all other major western players such as the United Kingdom and the United States of America, Australia has some distinct differences when it comes doing business. The amount of foreign investment and companies in Australia continues to grow which has inadvertently resulted in business practices becoming more accepting of different cultures, never more so than Australia.

With the recent passing of the ChAFTA (China-Australia Free Trade Agreement), Australia has officially opened it’s doors to a country and culture in which differences outweigh similarities. The Agreement has solidified Australia’s position as a country who is willing and committed to strengthening it’s industries through the benefit of foreign investment and trade.

Aside from international corporations benefiting from Australia’s eagerness to trade (especially those of Chinese origin), the precedent the ChAFTA has set is one which the country can proud of if not purely from the fact that it took a decade to get this Trade Agreement through. Individual foreign investors and business people will also experience a positive flow-on effect from the message this Agreement has sent to the world. Why? Because China is officially the most influential economy in the world.

In 2014 it was announced that China had overtaken the United States of America as the world’s largest economy as per the publishing of the World Bank’s International Comparison Program. The amount of research involved in compiling this Program is so involved and complex that there has only been three of these reports conducted in 20 years.

When this was announced the difference’s between Western and Eastern cultures became loudly apparent. America has previously worn the title of the most ‘powerful country in the world’ with pride and has almost somewhat demanded the rest of the world recognise this achievement. That title, up until a few years ago, also included the worlds most powerful economy. However, China offered a reaction on the other end of the spectrum. They did wish for this news of holding the largest economy to be splashed across the media all over the world and in fact, the Chinese Government arranged a complete news ‘black out’ of the announcement to the residents of China.

Irrespective of it’s motives of controlling the consequences of having this title bestowed upon them, the fact is, that China is a good allie to have and which will propel Australia into more opportunities. The reassurance that foreign investors will receive through choosing Australia as their investment destination, will be double-glazed. Firstly the opportunities Australia offers for business development, innovation, investment and growth are increasing to grow in size and sustainability. The second layer will be the assumed strength and super power of having China on board.

Despite cultural differences, Australia was a land built on immigrants and diversity. The somewhat isolation of it’s position from the rest of the world, uniqueness of the geography and magnitude of size has seen Australia become a culture of survival throughout struggle and conflict whether it be environmental or economic.

The ChAFTA has strengthened that culture and reinforced to the world economy that Australia is a country of unlimited potential when it comes to doing business.